6(1)Section 83 of FA 1989 is amended as follows.U.K.
(2)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)After subsection (2D) (exclusion if assets transferred for fair value and consideration forms part of long-term insurance fund) insert—
“(2DA)If—
(a)assets of the company's long-term insurance fund are transferred by the company to another person (“the transferee”),
(b)the transferee assumes, as a result of the transfer, a liability representing a debenture loan which, immediately before the transfer, was a liability of that fund, and
(c)the liability does not, as a result of the transfer, become a liability of any long-term insurance fund of the transferee,
so much of the fair value of the assets as does not exceed the fair value of the liability is excluded from subsection (2B) above.”.
(4)In subsection (8) (definitions), in the definition of “fair value”, for “, in relation to assets,” to “its amount;” substitute “—
(a)in relation to assets, means the amount which would be obtained from an independent person purchasing them or, if the assets are money, its amount;
(b)in relation to liabilities, means the amount which would be paid to an independent person assuming them;”.
(5)The amendments made by this paragraph have effect in relation to transfers taking place on or after 22nd March 2006.
Textual Amendments
F1Sch. 11 para. 6(2) repealed (with effect in accordance with Sch. 9 of the amending Act) by Finance Act 2007 (c. 11), s. 114, {Sch. 27 Pt. 2(9) Note}